POPULATION GROWTH AND SAVINGS IN NIGERIA
Ngozi M. Nwakeze, Oluwasola E. Omoju

Abstract
This study examines the effect of population growth on savings in Nigeria. Theoretical models and empirical studies yield ambiguous predictions concerning the impact of population growth on saving. Recent researches in this field show that population growth could lead to increase in savings through the growth effect or a decrease in savings through the dependency effect. The analytical framework is based on econometric methodology encompassing the error correction model of regression analysis using data from 1980 to 2007. Empirical results show that income and rapid population growth have positive and negative significant impact respectively on savings in Nigeria. Thus, policies should be concentrated towards enhancing the level of income and also reducing the nation’s population growth to bolster savings.

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